Globe buys back $426M in perpetual securities

GLOBE TELECOM, Inc. said it has repurchased $426.42 million of its dollar-denominated perpetual securities following the expiration of its tender offer, as part of its effort to reduce debt and improve cash flows.

In a regulatory filing on Thursday, the listed telecommunications company said the amount represents the securities tendered and accepted for purchase at the close of the offer.

The tender offer, which ran from April 14 to 22, will be settled on April 24. Globe said the remaining principal amount of the securities stood at $173.58 million after the transaction.

The buyback forms part of the company’s $600-million senior perpetual capital securities issued in 2021. Globe had offered to purchase any and all outstanding 4.2% senior perpetual securities at $1,000 per $1,000 principal amount, with Morgan Stanley acting as dealer manager.

The company said the transaction is part of a broader effort to retire perpetual debt, which carries ongoing distribution obligations.

Globe issued the $600-million securities in October 2021 at an initial distribution rate of 4.2%, payable semi-annually.

According to an earlier disclosure, the securities have no maturity date but include a step-up feature that increases the cost of keeping them outstanding over time. They also carry an early redemption option by August, with coupon rates set to rise if not redeemed.

For 2026, Globe expects low- to mid-single-digit revenue growth following a decline in 2025.

The company reported a 4.12% drop in net income to P23.3 billion in 2025 from P24.3 billion in 2024, weighed down by higher depreciation and interest expenses and lower revenues.

At the local bourse on Thursday, Globe shares rose P2, or 0.12%, to close at P1,650 apiece. — Ashley Erika O. Jose